Legal Question in Real Estate Law in Indiana

construction of improvements by a neighbor (family member)

Family member 1, believing there was an agreement to swap real estate parcels, made improvments to a barn on parcel A owned by family member 2. Member 2 is willing to give away parcel A, but in return, he wants to receive the value of parcel A -- including improvements.

I was hoping that there might be a way to force member 2 to consider the value of the improvements in a swap or to force member 2 to reimburse member 1 for improvments if the swap does not go through.

I fear that legally member 1 has no legal right for compensation, even though member 2 receievd the benefit (and was aware of the construction of $100,000 in improvments.).


Asked on 6/13/08, 10:21 pm

2 Answers from Attorneys
C. David DuMond Law Offices of David DuMond

Re: construction of improvements by a neighbor (family member)

Your instincts are good: you should fear that the family member who made improvements to a parcel of real estate based on an unwritten agreement to swap parcels may not legally be entitled to compensation, because real estate agreements have to be written to be enforceable. However, the law is not a complete ass, and there are equitable exceptions to these rules, including 'equitable estoppel". These exceptions are very fact sensitive, and you should confer with an attorney experienced in real estate litigation. Good luck.

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Answered on 6/14/08, 1:14 pm
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: construction of improvements by a neighbor (family member)

Member 1 will not be entitled to such "unjust enrichment". Memer 2 is entitled to compensation.

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Answered on 6/14/08, 9:42 pm


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